SACRAMENTO, Calif. September 24, 2015 – Three persons were arrested today on felony charges contained in a 42-count indictment returned by a federal grand jury in Sacramento on September 10, 2015, United States Attorney Benjamin B. Wagner announced.

The indictment, unsealed today, charges John Michael DiChiara, 57, of Nevada City; James C. Castle, 51, formerly of Santa Rosa; Remus A. Kirkpatrick, 58, formerly of Oceanside; George B. Larsen, 54, formerly of San Rafael; Laura Pezzi, 59, of Roseville; Larry Todt, 63, formerly of Malibu; and Michael Romano, 68, of Benicia, charging them with conspiracy, bank fraud, false making of documents, and money laundering. Tisha Trites, 49, and Todd Smith, 44, both of San Diego, pleaded guilty to related charges before U.S. District Judge Garland E. Burrell Jr. on September 4, 2015.

DiChiara was arrested today in Cool, and Pezzi and Romano were arrested at their homes. The other four defendants listed in the indictment have yet to be arrested.

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German government ministers reportedly turned a blind eye to Volkswagen installing cheat devices to fool U.S. diesel emissions tests, raising the possibility that the mushrooming scandal could cause embarrassment for Chancellor Angela Merkel.

Britain’s Daily Telegraph, citing a German parliamentary answer, reports that German ministers were warned months ago of “defeat device” software installed on Volkswagen’s diesel cars. The transport ministry answered a parliamentary question about the country’s car industry on July 28 saying, “The federal government is award of (defeat devices), which have the goal of (test) cycle detection,” according to The Telegraph.

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Former Carlisle Chief Executive Officer (CEO) pled guilty to participating in a $30 million fraud scheme involving ten low-income housing developments.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Nadine Gurley, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Former Carlisle CEO Matthew Greer, 37, of Miami Beach, pled guilty yesterday before United States District Court Judge Ursula Ungaro to two counts of conspiracy to commit theft of government money, in connection with a scheme to steal government funds intended for the construction of low-income housing.

According to court documents, including the factual proffer in support of the defendant’s plea, Matthew Greer and Lloyd Boggio served, at alternating times, as CEO of Carlisle Development Group (CDG), a low-income housing developer in Miami, Florida. CDG applied for federal tax credits and federal grant monies to build low-income housing developments through a program administered by the Florida Housing Finance Corporation (FHFC). To obtain these federal funds, FHFC required developers to submit proposed development costs, including a construction contract signed by the developer and contractor.

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New York’s state top lawyer is launching a lawsuit for fraud, deception and misrepresentation after it emerged Europe’s largest car brand is to recall half a million cars in the US and potentially millions more across the globe.

Attorney General Eric Schneiderman said: “No company should be allowed to evade our environmental laws or promise consumers a fake bill of goods.”

VW chief executive Martin Winterkorn has launched a grovelling apology but gave no sign of stepping down, despite outcry over the scandal that has obliterated trust in the brand and is set to result in tens of billions of pounds worth of fines.

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A Bentley-driving Cicero preacher who once made headlines for warning a federal judge about the “wrath of God” was convicted Wednesday of submitting false documents to secure hundreds of thousands of dollars in state subsidies for day care centers.

After deliberating for about 11 hours over two days, a federal jury convicted Herman Jackson on all 13 counts of wire fraud, mail fraud and lying to the FBI. His wife, Jannette Faria, was also convicted of all five fraud counts against her.

After the verdict, U.S. District Judge Sharon Johnson Coleman ordered Jackson taken into immediate custody, citing his previous behavior while out on bond awaiting trial and noting he faces a potentially lengthy sentence.

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